An Overview on SAP

Wipro Technologies
For Internal Circulation only

Date: 03-Aug-2005
Prepared by Sivasundar S Muthusamy

Contents Overview System Landscapes R/3 Modules Business Processes Organisational Structure Data Requirements for SAP Data Transfer to R/3 System Implementation Methodology

Objective Objective:
To give some Basic Knowledge about SAP SAP products Terminologies used in SAP arena (some)

Target Audience:
No Knowledge in SAP Going to work on SAP

Overview SAP

Systems Analysis and Program Development

Vision
Develop standard application software for real-time business processing

Overview SAP (continued)

Largest software company in the world (2004)
R/2 Launched in 1972 by five former IBM employees. R/3 Three-tier architecture (database, application, and user interface) in 1990s.

World class functionality

Market leadership in all functional based products Full integration of applications Real-time business processing

Global Scalability
150 countries 40 languages 28 country solutions & legal reporting, currencies

Consumer Products (CP) Industry Leadership:

86% of Fortune 500 CP companies use SAP 48 of the top 50 CP companies use SAP Functionality to meet critical CP manufactures needs Highest development spend on CP future requirements

Overview Products of SAP SAP R/3 and R/3 Enterprise

R/3 Enterprise 4.70 4.6 C / 4.6B 4.5B 4.0B

mySAP Business Suite

mySAP CRM
SAP CRM 4.0

mySAP SCM
SAP SCM 4.1 SAP SCM 4.0 SAP APO 3.1 SAP APO 3.0

mySAP SRM
SAP SRM 4.0 SAP SRM 3.0

mySAP SEM
SAP SEM-BW 3.50 SAP SEM-BW 3.20

mySAP PLM
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Overview Products of SAP (continued) SAP R/3 NetWeaver

SAP NetWeaver '04 SAP MDM 3.00

SAP Industry Solutions

Aerospace & Defense Automotive Banking Health Care Financials Insurance Oil & Gas Retail Utilities, etc.

SAP xApps SAP Solution Manager

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Contents Overview System Landscapes R/3 Modules Business Processes Organisational Structure Data Requirements for SAP Data Transfer to R/3 System Implementation Methodology

SAP R/3 Landscape Gillette (Europe)

LEGEND
GLOBAL DEVELOPMENT

DG0
DEVELOPMENT CONSOLIDATION

PRD SUPPORT PRD SUPPORT (GLOBAL CODE) PROJECTS PROJECTS (GLOBAL CODE) SYSTEM REFRESH
PRODUCTION

C11

CK1

PK1 PRD

XK1

EK1

TK2

COPY OF DEVELOPMENT

EDUCATION

COPY OF PRODUCTION

XK4

COPY OF DEVELOPMENT

System Integration Sample Legacy

HR Org. Mgmt.

SAP System
Infocubes BW-BPS Contract, Vendor & Catalogue Management Pur.Order & External Services

BACK-OFFICE 4.5B

HR
Payroll Time & Attendance Sales Orders

BW
SEM-BCS SEM-Cockpit

MM
AA Connect Sales Pricing

Contract &. Catalogue Mgmt.

Billing

SD
InterCompany Sales HRL

Goods Receipt Inventory Mgmt

SRM
Self Service &

Customer Dunning

Credit Mgmt

Invoice Verification

Service
Procurements

Tax Accounting Luminus Fixed Asset Accounting AP Jupiter Accrual Accounting Cash Journal Accounting

Banking

GL

FI/CO
AR

Profit Centre Acctg. Cost Centre & Internal Order Acctg. Project Acctg. Investment Mgmt. Profitability Acctg. Revenue & Cost Planning

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Gillette Manufacturing Application Systems

(May 04)

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Contents Overview System Landscapes R/3 Modules Business Processes Organisational Structure Data Requirements for SAP Data Transfer to R/3 System Implementation Methodology

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SAP R/3 Modules & Integration

Modules in R/3 Functional Technical
MM
Materials Mgmt.

SD
Sales & Distribution

FI
Financial Accounting

CO
Controlling

PP
Production Planning

AA

R/3
PM

Asset Accounting

QM
Quality Mgmt. Plant Maintenance

Client / Server ABAP/4

HR
Human Resources

PS
Project System

WF
Workflow

IS
Industry Solutions

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Full Integration Across Functions Integrated means:

Your work is related to the work of others

Example:
5000 Juicers please

Customer Bob
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Full Integration Across Functions (continued)

Sales data for customer is entered into the Sales and Distribution module

SD MM PP

FI AP

AR
CO

Create Sales Order Item Quantity Item Price

PM

QM

AM

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Full Integration Across Functions (continued)

A check is performed (in the Materials Management module) to ensure the ordered product is available

SD MM PP PM

FI AP

AR
CO

QM
2,000 unreserved juicers

AM

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Full Integration Across Functions (continued)

A check is made (in the Accounts Receivable module) to ensure the customer is credit worthy

SD MM PP PM

FI AP

Either warning or clearance to order

The systems assigns an order number

AR
CO

QM

AM

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Full Integration Across Functions (continued)

Bob is credit worthy: Materials Management reserves those 2,000 juicers

SD MM PP PM

FI AP

AR
CO

QM
2,000 reserved Juicers

AM

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Full Integration Across Functions (continued)

Material Management orders any necessary materials needed for production Raw Materials arrive and warehouse clerk enters details for invoice verification
Raw Materials

SD MM

FI AP

PP
PM QM

AR
CO AM

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Full Integration Across Functions (continued)

Accounts Payable deals with invoice from supplier for raw material Payment terms will already be entered. Accounts Payable initiates payment
Payment Run: Pay for Raw Material on 17th

SD
MM PP PM QM

FI
AP AR CO AM

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Full Integration Across Functions (continued)

SD

FI AP

Materials Management requests Production Planning to make 3,000 more juicers

MM PP PM

AR
CO

QM

AM

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Full Integration Across Functions (continued)

Production Planning creates schedules for the machines and checks with Plant Maintenance to make sure no repairs are scheduled Production planning creates schedules for employees to make more juicers

SD MM

FI AP AR CO AM

PP
PM QM

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Full Integration Across Functions (continued)

Juicers are produced in Production Planning, the quality is checked in Quality Management

SD MM PP PM

FI AP

Material Management knows when the product is available

AR
CO

QM

AM

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Full Integration Across Functions (continued)

The General Ledger in Finance is updated with the increase in stock Sales and Distribution is informed that the product is ready to ship

SD MM

FI AP

PP
PM QM

AR
CO AM

Delivery

Customer Bob
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Full Integration Across Functions (continued)

Bob is happy, the delivery is correct so Sales and Distribution will create an invoice Accounts Receivable will track Bob to make sure he pays, and match the payment to the invoice when he does Finance will update the General Ledger to increase the amount of money that is owed to us until Bob pays

SD MM PP PM QM

FI AP AR CO AM

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Full Integration Across Functions (continued)

During the whole process the Controlling module has collected information for cost analysis

SD MM PP PM

FI AP

It will tell us how profitable that sale of juicers to Bob actually was

AR
CO

QM

AM

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Contents Overview System Landscapes R/3 Modules Business Processes Organisational Structure Data Requirements for SAP Data Transfer to R/3 System Implementation Methodology

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Business Processes Procurement

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Business Processes Sales

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Business Processes Project Systems

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Contents Overview System Landscapes R/3 Modules Business Processes Organisational Structure Data Requirements for SAP Data Transfer to R/3 System Implementation Methodology

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Organisational Structure
Hierarchical Structure within SAP
Client Company Code Plant Storage Location Purchasing Organisation Sales Organisation.

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Organisation Structure (continued)

Client:
Self-contained unit in a R/3 System. Highest level entity of the organization structure. Example: A corporate group (Wipro Business world wide).

Company Code:
Legal Entity.

Balance sheets and Profit & Loss statements.

Example: A company (Wipro Infotech Business).

Plant:
A Physical Facility that Procures, Stores or Produces Materials & Services. Valuation of Materials (in General). Example: A Manufacturing Unit (Plant in Pondy).
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Organisation Structure (continued)

Storage Location:
Differentiates the material stocks within a plant.

Purchasing Organisation:
Purchasing of Materials & Services. Negotiating Purchasing conditions with Vendors.

Sales Organisation:
Selling of Materials & Services. Negotiating Selling conditions with Customers. Further Classified into Division, Distribution Channel, Sales Area & Sales Group.

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Organisational Structure Gillette Europe (continued)

0300 Operating Concern

0010 Braun

0010 Braun Gmbh EUR

9075 Spain EUR

9020 Mexico PES

9785 Silk Epil EUR

9085 Ireland EUR

9500 China CNY

DE01

ES50

MX50

FR50

IE50

CN50

DE03

IE60

DE05

DE06
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Contents Overview System Landscapes R/3 Modules Business Processes Organisational Structure Data Requirements for SAP Data Transfer to R/3 System Implementation Methodology

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Data Requirements for SAP R/3

Master Data
Centralised Information Used across Multiple Systems at multiple locations

Used also by multiple user departments.

1. Material Master:
Contains Information about all the Materials that the company
Procures or Produces Stores and Sells. Unique within the Client.

2. BOM:
A complete, formally structured list of the components that makes up a product or assembly. Contains the Components with the quantity and unit of measure.

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Data Requirements for SAP R/3 (continued)

3. Customer Master:
Unique number within the SAP system used to identify the Customer Contains information about the Customer Maintained at Company code, Sales Organisation & Distribution Channel levels.

4. Vendor Master:
Unique number within the system Maintained at Company code & Purchasing Organisation levels

5. Purchase Info Record:

Defines Material & Vendor relationship. Pricing Details. Purchasing Conditions. Maintained at Plant & or Purchasing Organisation levels.

Transactional Data
Reflects Daily Business Operations

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Sample List of Objects (Gillette Barcelona Implementation)

List of Type Objects to be converted Data Area Application
S. No. Description

1 Material Master 2 BOM 3 Work Center Direct Materials Logistics Master Data 4 Routing 5 Production Version 6 Customer Master 7 Vendor Master 8 Purchase Info Record 1 Material Master Indirect Materials 2 Vendor Master 3 Purchase Info Record Finance Others 1 G/L Master 2 Asset Master 1 Open Purchase Orders Direct Materials Logistics Transactional Data Indirect Materials 2 Open Scheduling Agreements 3 Open Contracts 4 Opening Stock 1 Open Purchase Orders 2 Open Scheduling Aggrements 3 Opening Stock 1 Fixed Asset - Line Items Finance Others 2 Vendor - Line Items 3 Customer - Line Items 4 GL Account - Balances (B/S)

This above list is indicative only. The final list will be decided jointly by Business & IT team during the design stage.

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Contents Overview System Landscapes R/3 Modules Business Processes Organisational Structure Data Requirements for SAP Data Transfer to R/3 System Implementation Methodology

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Data Transfer to R/3 System

Data Transfer Workbench (SXDA)
Purpose:
Supports the automatic transfer of data into the R/3 System. Useful for business objects with large data volumes. Efficient and consistent data transfer to the R/3 System.

Features:
Administration and organization of data transfer projects. Tools for analyzing the required SAP structures. Integration of standard data transfer programs. Registration and integration of your own data transfer programs & help programs. Various techniques to load data into R/3.

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Data Transfer to R/3 System (continued)

Data Transfer Programs / Applications
SAP Standard Transfer Programs & Interfaces:
Transfer file should be in the correct SAP format. One of the Techniques is used depending on the type of business object. Some objects may be provided with multiple Techniques for upload.

Custom Conversion Programs:

Write an appropriate program. Follow the structuring rules that apply to data transfer objects. Follow the guidelines in Developing Programs, Function Modules and BAPIs. The generated processing log will help us to reprocess the errors. Batch Input program generator can generate sample Batch Input programs by running through the SAP business transaction.

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Data Transfer to R/3 System (continued)

Data Transfer Programs / Applications (continued)
Legacy System Migration Workbench (LSMW):
Reads the transfer data from one or more files. Converts the data from the source format into the target format. Data transfer from legacy systems are possible once only or periodically. SAP Standard Structures are available for the specified Objects. Custom Recoding can be easily done based on the Business needs. SAP Recommended.

Computer Aided Testing Tool (CATT):

A testing tool & sometimes used for Data conversion too. Recording of several transactions into a test case, can be linked easily later. Provides flexible data management using parameters and variables. Useful for a small amount of data transfer. Data transfer rate is lesser than LSMW.

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Data Transfer to R/3 System (continued)

Data Conversion Techniques
1. Batch Input Method:
A program reads the external data and stores it in a batch input session. User will run the session to execute the SAP transactions for posting. Can be executed in foreground / background / during processing with error display.

2. Direct Input Method:

Stores the data directly into the SAP application tables by calling a number of function modules provided by the applications out of several reports. These function modules are performing the necessary business checks. In case of errors, Direct Input provides a restart mechanism. Able to activate the restart mechanism, Direct Input programs must be executed in the background.

3. BAPI Method:
Interfaces that provide external access to R/3 business processes and data. Business Application Programming Interfaces Enables object-oriented access to R/3 application components. Implemented and stored as RFC-enabled function modules in the Function Builder.
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Contents Overview System Landscapes R/3 Modules Business Processes Organisational Structure Data Requirements for SAP Data Transfer to R/3 System Implementation Methodology

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Implementation Methodology Implementation Methodologies 1. ASAP

Project Preparation Business Blue Print Realization Final Preparation Go-live & Support Scope Plan Analyze Design Build Deliver Support
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2. EAPM Enterprise Application Process Model (Wipro EAS)

APO Implementation Road Map ASAP

Initial Project Planning Project Charter Understanding Management Strategy,Goal and Vision Understanding the supply chain issues and opportunities Project Procedure. Project Schedule and Implementation Sequence Technical Requirements Quality Check Base line Configuration Configuring the Supply chain solution model Configure test Case and define Testing Plan. Simulating supply chain processes. Reviewing base line configuration and carry out final configuration Establishing Production Environments. Developing and testing conversion and Interface programs Integration testing Reviewing KPIs and benchmark results Establishing User roles and authorizations. Quality Checks .

Post Go-live Support Validating live supply chain management solutions results Project review

Project Preparation Business Realization Final

Preparation
Blueprint AS-IS modeling of supply chain and planning processes Business Process Requirements Define Benchmark and KPIS for measure of success. Designing Supply chain Model Identifying the Gaps. Prototyping and demonstration Data Migration Strategy TO-BE modeling for SCM Identifying Training Need Quality Check

Go Live & Support

Final Integration Testing End User Training Production environment Setting and System Testing . Developing cutover plan and performing cutover Quality Check

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Overview on SAP

Questions ?

Thanks !

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